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Nvidia's next-generation Vera Rubin AI platform is driving a sharp increase in demand for multilayer ceramic capacitors (MLCCs), creating new opportunities for suppliers such as Samsung Electro-Mechanics as artificial intelligence infrastructure becomes more complex and power-intensive, according to a report by The Korea Herald.
The report, citing a Morgan Stanley analysis, said the MLCC content of Nvidia's next-generation VR200 NVL72 server rack is estimated at USD 4,320, compared with roughly USD 1,530 in the previous-generation GB300 system. This represents an increase of 182 per cent, highlighting the growing importance of capacitors in advanced AI computing systems. MLCCs are small electronic components that help stabilise power delivery by absorbing rapid voltage fluctuations in processors. As AI systems become larger and consume more power, the need for these components has increased significantly. According to the report, a single high-end AI server rack can require hundreds of thousands of MLCCs, making them a critical part of the AI hardware supply chain. Nvidia recently announced at Computex 2026 that Vera Rubin had entered full production, further increasing expectations of strong demand for these components. The report said demand is growing much faster than supply. Goldman Sachs estimates that MLCC demand from AI servers will more than quadruple between 2025 and 2030, while industry production capacity is expected to grow only slightly above 10 per cent annually. It stated "The sharp increase is tightening supply in a market where demand is already outpacing production, allowing manufacturers such as Samsung Electro-Mechanics to raise prices and secure long-term supply contracts". According to the report, Japanese manufacturers Murata and Taiyo Yuden, which are among the market leaders in MLCC production, increased prices for AI server and automotive components by 15 to 35 per cent this year. Japanese customs data for April also showed that average MLCC export prices were up 16 per cent compared to a year earlier. The report noted that supply agreements, once common mainly in the semiconductor industry, are now spreading to the capacitor market as companies seek to secure future supplies. Samsung Electro-Mechanics confirmed during its first-quarter earnings call that it has started signing legally binding long-term agreements with customers, including major AI technology companies. "We are securing forward volume through binding mid- to long-term contracts," Lee Tae-gon, head of strategic marketing at Samsung Electro-Mechanics, told analysts. According to Yang Seung-soo, an analyst at Meritz Securities, long-term contracts in the AI capacitor market are no longer primarily about protecting against price fluctuations but about securing limited supplies before competitors do. The report added that the tight supply environment could continue to support higher prices. For Samsung Electro-Mechanics, the world's second-largest producer of high-end MLCCs after Murata, the trend could significantly benefit earnings. Analysts estimate that a 10 per cent increase in MLCC prices could add around 600 billion won (USD 395 million) to the company's annual operating profit. The report highlighted that while chips and memory products have dominated discussions around AI infrastructure, capacitors are emerging as another critical component as demand for high-performance AI servers continues to grow. (ANI)
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